S&P rates Liberty Communications loan, notes B+

S&P said it assigned its B+ issue-level rating to Liberty Communications of Puerto Rico LLC's planned $500 million first-lien term loan B-2 issued by LCPR Loan Financing LLC and $820 million of senior secured notes issued by LCPR Senior Secured Financing DAC. The recovery rating is 3, which indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in default.

Liberty Communications of Puerto Rico will use the proceeds to repay $1 billion of its first-lien term loan B due in 2026, upstream $250 million to the parent, and pay transaction-related fees and expenses.

“Our B+ issuer credit rating is unchanged because we believe that despite the incremental increase in financial leverage, the company has a credible deleveraging path through higher earnings, driven by solid growth expectations from LCPR's cable business,” the agency said in a press release.

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